CHAPTER ONE1.0 INTRODUCTION 1.1 BACKGROUND OF THE STUDYManagement by objectives and it’s application in financial Institutions in Nigeria will therefore focus on how the effective application of MBO programme will assist in motivating the staff of union Bank towards higher productivity and to reduce the urgly sceneries that are caused by dissatisfaction, at the place of work. Management by objectives (MBO) is one of the latest methods advocated by Peter Drucker as a technique of Management where by managers interact with their subordinates by directing, teaching and supporting them to achieve their individual objectives which leads to the achievement of the over all objectives of the organization. In the opinion of this prolific writer on management studies, the basic concept of MBO is that top executives and subordinate managers should all be involved in determing company objectives and define areas of responsibility, and integrate into them the goals of the employees. Such a goal congruency will help to elicit employee’s commitment will resultant increase in productivity. To be an efficient and effective worker means so many things the imperatives of which amongs others is that the workers is skilled, trained, willing, ables, is motivated intrinsically and extrinsically. In other words, a part from good remuneration, he has reasonable freedom for personal initiative at the work place. There is the opportunity of expressing himself through participative decision making process through this, he is aware of the targets and acquires a personal commitment towards it’s fulfillment, he has a sense of belonging and achievement when a target is achieved this is job satisfaction. From discussion so far, financial institutions are committed to providing finance services and intermediation to the various segments of the economy needs, efficient and effective application of both human and non human resources to it in achieving the set objectives.The achievement of the prime objectives of any organization depends largely on the availability of able, willing, and skilled personnel and relevant technology on the one hand, efficient and effective co-ordination of the various efforts towards a common goal on the other hand. Union bank of Nigeria PLC is one of the bank that makes up Nigeria financial institutions. It is a public limited liability company incorporated under the company’s and Allied matters decree of 1990.Since it’s inception in 1917 with a registered head office at No. 40 marine street Lagos, it has been variously styled as the Bardays Bank – Dcoi.Bardays bank of Nigeria limited, and union bank of Nigeria limited, union bank of Nigeria PLC is currently wholly owned by Nigerian public with federal ministry of finance incorporated enjoying 51.67%. (union bank of Nigeria PLC Annual reports and Accounts 1993:13) Union Bank is one of the market leaders in Nigerian banking industry with an asset base of over N32 billion and customers deposit of over N20 billion as at September 1993 as against first bank’s asset base of N26 billion and deposit of over N17 billion naira as at December 1993. 1.2 STATEMENT OF PROBLEMS This study is therefore being undertaken to address the following problems.
- The objectives to be achieved within a given time frame normally set by management are not always known by subordinate.
- Subordinates do not participate in establishing target and key result areas departmental levels.
- Employees personal goals are not always integrated into the overall objectives of union bank.
- There is hardly any agreed definition of individual major areas of responsibility in terms of results expected and yard sticks for evaluating performance between management and subordinates.
- Due to lack of knowledge of individual contribution to the overall performance and nature of work which was not give room for personal initiatives, the employee lacks a sense of belonging and finds no joy and meaning in the work.
- The rate of labour turnover at the branch due mainly to resignations and dismissals for one misconduct or the other may have found expressions in the level of staff frustrations on the job and this turnover is no doubt a costly exercise to management.
All the above mentioned problems motivated the researcher to undertake the work which is on “Evaluation of management by objectives and it’s Application in financial Institution in Nigeria with particular reference to union Bank Nigeria PLC New Market Road Onitsha. 1.3 OBJECTIVES OF THE STUDY This research work is aimed at achieving the following objectives.
- To evaluate the extent of application of management by objective programme union bank new market road onitsha branch.
- To educate participants to appreciate the need for effective implementation of MBO programme in their operations.
- To find out what has been the problems and major obstacles toward full implementation of management by objectives in onitsha branch of union bank.
- To determine the effects of non application or haphazard application of MBO on the employee morale/ performance as well as the union bank in achieving their targets.
- To ascertain whether there exist a positive correlation between intrinsic reward i.e. an inner feeling of job satisfaction originating from work itself, recognition of efforts and employees performance/ attitude to work.
- This study will try to reveal how effective application of MbO programme in union bank onitsha will assist in boasting staff morale for higher productivity and job satisfaction.
1.4 RESEARCH QUESTIONS (1) To what extent are employees aware of the stated goals of union bank in recent time?. (2) To what extent are the subordinates of union bank involved in determining the goals of the organization and the scope of their jobs in accomplishing these goal?. (3) To what extent will the employee’s commitment in union bank be bosted if they participate in setting the goals of the organization?. (4) To what extent will the recognition of effort and hard work by the boss elicit employees higher productivity. (5) What are the effects of unfair distribution of organization favour (e.g) promotion, merit award, normination for training, e.t.c) on staff morale and productivity? .1.5 SIGNIFICANCE OF THE STUDY This research will be of immense importance to the following sectors.
- Union bank of Nigerian PLC.
- Other banks and financial institution.
- General public.
- Other researchers
- Practicing managers
- Federal government
The relevance of this research will be to explain how an effective application of management by objective will enhance employee morale and productivity. The findings will help policy makers to learn towards the modern employee centred approach in management and de – emphasis the old job centred approach still being practiced. This study will also educate managers that are not abreat with the current state of the art of management on the fact that given reasonable freedom for execution of task, the subordinates will perform better than when bullied, controlled and intimidated to carry out an assignment. 1.6 SCOPE OF THE STUDYAs earlier mentioned, the subject of this research is to evaluate the extent of management by objective and it’s application in financial institution in Nigerian. In doing this, references were made to union bank of Nigeria PLC with particular reference to union bank of Nigeria PLC new market wad, Onitsha branch. Nevertheless, references could be made to other banks and institutions for purposes of clarity and vivid understanding of the subject topic but not within the scope of this study. 1.7 LIMITATION The time available for this study was too short five or six months were not adequate period to do an indepth study of an organization of this magnitude. The financial requirement of research project is too great. The researcher is a final year student of Business Administration and Management who depends solely on her parent, this factor has contributed primarily in limiting the research work to union bank only. The researcher would be faced with some embarrassments that would arise from the impatience and uncompromising attitudes of th respondents even when the study was supposed to encourage ready co-operation from the people. Also there were some environmental and institutional problems like a situation where some official documents that would be of help to the research work could not be reached due to official policy against releasing such, plus the bureaucratic bottlenecks which made it impossible for the researcher to have access to some information that would have been of essence to this study. Finally, the researcher was faced with the problem of inadequate data and past works that were relevant to this study. The past work were completely unrelated to the issue at stake. 1.8 DEFINITION OF TERMSJOB STATISFACTION: The sum of the evaluations of the discernible aspects of which the job is composed.MOTIVATION: The properisity to act in the direction of a particular outcome, a set of outcome. It is a function of both needs and the perceived probability that those needs will be met.RESPONDENT: All those who responded by attending to the questionnaire administered by the researcher.OBJECTIVES OR GOAL: The end toward which achieving is aimed. The end point of planning.PLANNING: Setting objectives and deciding on the best ways of achieving the objective.MANAGERS: Those who under take the task of and functions of managing at any level in any kind of enterprise.STAFF: Group of assistants working together under a manager..